fxs_header_sponsor_anchor

News

EUR/USD: Institutional risk priced in, now slightly unwinding – Danske Bank

Analysts from Danske Bank, see the EUR/USD pair trading in the range 1.07-1.11, with risks tilted to the upper end after recent events. 

Key Quotes: 

“In our view, the recent underperformance of EUR/USD has clearly derived from infighting among EU institutions and concerns related to what we regard as necessary monetary and fiscal measures. This has meant a negative risk premium has been building in EUR/USD spot. However, for a few weeks this story has been well priced into both spot and options markets and we have kept our slightly more upbeat assessment.”

“Our longer-term assessment is not driven by EU budget talks or the ECB but rather by the outlook for global reflationary trends, as reflation lessens debt burdens, leads to smoother politics and financial flows tend to be EUR positive. We continue to see EUR/USD as trading around 1.09 +/-2 figures but financial trends towards reflation and calming European politics may put us in the upper end of such a band, at least for a few weeks.”
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.